Solution-What gains or losses would be recorded by abc

What gains or losses would be recorded by abc

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Reference no: EM133114195

Question - On December 9, 20X1, ABC Co., a Canadian company, acquired inventory from a foreign supplier located in France for €100,000, with payment due in euros on January 8, 20X2. Exchange rates for euros were as follows:

December 9, 20X1 €1 = $1.50

December 31, 20X1 €1 = $1.55

January 8, 20X2 €1 = $1.57

ABC has a December 31 year end. What gains and/or losses would be recorded by ABC for the inventory transaction?

a) A loss of $5,000 in 20X1 and a loss of $7,000 in 20X2

b) A loss of $5,000 in 20X1 and a loss of $2,000 in 20X2

c) A gain of $5,000 in 20X1 and a gain of $2,000 in 20X2

d) A gain of $5,000 in 20X1 and a gain of $7,000 in 20X2

Reference no: EM133114195

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What gains or losses would be recorded by abc

Reference no: EM133114195

Reference no: EM133114195

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